Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): February 8, 2012

 

 

FleetCor Technologies, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-35004   72-1074903

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification No.)

5445 Triangle Parkway, Suite 400,

Norcross, Georgia

  30092
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (770) 449-0479

Not Applicable

Former name or former address, if changed since last report

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 2.02 Results of Operations and Financial Condition.

On February 8, 2012, FleetCor Technologies, Inc. issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2011. A copy of the press release is attached as Exhibit 99.1, which is incorporated by reference in its entirety. The information in this item, including Exhibit 99.1, is being furnished, not filed. Accordingly, the information in this item will not be incorporated by reference into any registration statement filed by FleetCor Technologies, Inc. under the Securities Act of 1933, as amended, unless specifically identified as being incorporated into it by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. 99.1 FleetCor Technologies, Inc. press release dated February 8, 2012


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  FleetCor Technologies, Inc.
February 8, 2012  

By:    /s/ Eric R. Dey

    Eric R. Dey
    Chief Financial Officer


Exhibit Index

 

Exhibit
No.
   Description
99.1    FleetCor Technologies, Inc. press release dated February 8, 2012
Press Release

Exhibit 99.1

FleetCor Reports Fourth Quarter and Full Year 2011 Financial Results

Provides Outlook for Fiscal Year 2012

NORCROSS, Ga., February 8, 2012 — FleetCor Technologies, Inc. (NYSE: FLT), a leading independent global provider of fuel cards and specialized payment products to businesses, today reported financial results for its fourth quarter and full year ended December 31, 2011.

“Our Q4 results were very good, helping us to a nice finish to 2011. For full year 2011, revenue grew approximately 20% and adjusted net income grew over 30% on a pro forma basis. Strategically, we completed two meaningful international acquisitions, and delivered a major new processing contract with Shell. All and all, a very successful first year as a public company,” said Ron Clarke, chairman and chief executive officer, FleetCor Technologies, Inc.

Financial results for the fourth quarter of 2011:

GAAP Results

 

   

Total revenues, net, in the fourth quarter of 2011 increased 32% to $140.2 million compared to $106.5 million in the fourth quarter of 2010

 

   

Net income in the fourth quarter of 2011 increased 116% to $37.8 million, or $0.45 per diluted share, compared to $17.5 million, or $0.22 per diluted share in the fourth quarter of 2010

Non-GAAP Results

 

   

Adjusted revenues1 (revenues, net less merchant commissions) in the fourth quarter of 2011 increased 29% to $125.5 million compared to $97.0 million in the fourth quarter of 2010

 

   

Adjusted net income1 in the fourth quarter of 2011 increased 28% to $47.3 million, or $0.56 per diluted share, compared to $37.1 million, or $0.44 per diluted share in the fourth quarter of 2010 on a pro forma basis (to reflect the impact of public company expenses, non-cash compensation expense, increase in the effective tax rate during the fourth quarter of 2011, and fully diluted shares effective in the fourth quarter of 2011, as if these changes had occurred during the fourth quarter of 2010)

Financial results for the full year of 2011:

GAAP Results

 

   

Total revenue in 2011 increased 20% to $519.6 million compared to $433.8 million in 2010

 

   

Net income in 2011 increased 37% to $147.3 million, or $1.76 per diluted share, compared to $107.9 million, or $1.34 per diluted share in 2010

Non-GAAP Results

 

   

Adjusted revenues1 (revenues, net less merchant commissions) in 2011 increased 22% to $468.4 million compared to $384.8 million in 2010

 

   

Adjusted net income1 for 2011 increased 31% to $181.7 million, or $2.17 per diluted share, compared to $139.0 million, or $1.66 per diluted share in 2010 on a pro forma basis (to reflect the impact of public company expenses, non-cash compensation expense, loss on extinguishment of debt, increase in the effective tax rate during 2011, and fully diluted shares in 2011, as if these changes had occurred during 2010)

 

1  Reconciliations of GAAP results to non GAAP results and pro forma adjustments are provided in Exhibit 1 attached. Additional supplemental data is provided in Exhibit 2 and segment information is provided in Exhibit 3.

 

1


2012 Outlook

FleetCor Technologies, Inc. is introducing initial financial guidance for full year 2012:

 

   

Revenues, net between $615 million and $625 million

 

   

Adjusted Net Income between $217 million and $222 million

 

   

Adjusted Net Income per diluted share between $2.55 and $2.60

The Company’s full-year 2012 guidance assumes the following:

 

   

Fuel prices flat to 2011 average fuel price

 

   

A 0.2% increase in our effective tax rate from 30.1% in 2011 to 30.3% in 2012

 

   

An increase of 1.5 million average diluted shares outstanding, from 83.7 million shares in 2011 to 85.2 million shares in 2012

 

   

No impact from future acquisitions or material new partnership agreements

“The full year guidance produces a 19% full year 2012 revenue and adjusted net income per share growth rate at the midpoint of our guidance range versus 2011. We have strong business momentum entering 2012 but we also believe a conservative outlook is appropriate at the current time considering the macroeconomic environment, including fuel price spreads and foreign exchange rates,” said Eric Dey, chief financial officer FleetCor Technologies, Inc.

Conference Call

The Company will host a conference call to discuss fourth quarter and full year 2011 financial results today at 4:30pm ET. Hosting the call will be Ron Clarke, chief executive officer, and Eric Dey, chief financial officer. The conference call can be accessed live over the phone by dialing 877-941-2068, or for international callers 480-629-9712. A replay will be available one hour after the call and can be accessed by dialing 877-870-5176 or 858-384-5517 for international callers; the conference ID is 4509416. The replay will be available until Wednesday, February 15, 2012. The call will be webcast live from the Company’s investor relations website at investor.fleetcor.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about FleetCor’s beliefs, expectations and future performance, are forward-looking statements. Forward-looking statements can be identified by the use of words such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project” or “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or other comparable terminology. Examples of forward-looking statements in this press release include statements relating to revenue and earnings guidance, economic outlook, assumptions underlying financial guidance, and management’s plans for 2012 and confidence in prospects for growth. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement, such as delays or failures associated with implementation; fuel price and spread volatility; changes in credit risk of customers and associated losses; the actions of regulators relating to payment cards; failure to maintain or renew key business relationships; failure to maintain competitive offerings; failure to maintain or renew sources of financing; failure to complete, or delays in completing, anticipated new partnership arrangements or acquisitions and the failure to successfully integrate or otherwise achieve anticipated benefits from such partnerships or acquired businesses; failure to successfully expand business internationally; the impact of foreign exchange rates on operations,

 

2


revenue and income; the effects of general economic conditions on fueling patterns and the commercial activity of fleets, as well as the other risks and uncertainties identified under the caption “Risk Factors” in FleetCor’s Annual Report on Form 10-K for the year ended December 31, 2010, filed with the Securities and Exchange Commission on March 25, 2011. FleetCor believes these forward-looking statements are reasonable; however, forward-looking statements are not a guarantee of performance, and undue reliance should not be placed on such statements. The forward-looking statements included in this press release are made only as of the date hereof, and FleetCor does not undertake, and specifically disclaims, any obligation to update any such statements or to publicly announce the results of any revisions to any of such statements to reflect future events or developments.

About Non GAAP Financial Measures

Adjusted revenues are calculated as revenues less merchant commissions. Adjusted net income is calculated as net income, adjusted to eliminate (a) stock-based compensation expense related to share-based compensation awards, (b) amortization of deferred financing costs and intangible assets, (c) amortization of the premium recognized on the purchase of receivables and, (d) loss on the early extinguishment of debt. The company uses adjusted revenues as a basis to evaluate the company’s revenues net of the commissions that are paid to merchants to participate in our card programs. The commissions paid to merchants can vary when market spreads fluctuate in much the same way as revenues are impacted when market spreads fluctuate. The company believes this is a more effective way to evaluate the company’s revenue performance. We prepare adjusted net income to eliminate the effect of items that we do not consider indicative of our core operating performance. Adjusted revenues and adjusted net income are supplemental measures of operating performance that do not represent and should not be considered as an alternative to revenues, net, net income or cash flow from operations, as determined by U.S. generally accepted accounting principles, or U.S. GAAP, and our calculation thereof may not be comparable to that reported by other companies. We believe it is useful to exclude stock-based compensation expense from adjusted net income because non-cash equity grants made at a certain price and point in time do not necessarily reflect how our business is performing at any particular time and stock-based compensation expense is not a key measure of our core operating performance. We also believe that amortization expenses can vary substantially from company to company and from period to period depending upon their financing and accounting methods, the fair value and average expected life of their acquired intangible assets, their capital structures and the method by which their assets were acquired; therefore, we have excluded amortization expense from our adjusted net income. We also exclude loss on the early extinguishment of debt from adjusted net income as this expense is non-cash and is one-time in nature and does not reflect the ongoing operations of the business.

Management uses adjusted revenues and adjusted net income:

 

   

as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis;

 

   

for planning purposes, including the preparation of our internal annual operating budget;

 

   

to allocate resources to enhance the financial performance of our business; and

 

   

to evaluate the performance and effectiveness of our operational strategies.

We believe adjusted revenues and adjusted net income are used by investors as supplemental measures to evaluate the overall operating performance of companies in our industry. By providing these non GAAP financial measures, together with reconciliations, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing strategic initiatives.

 

3


About FleetCor

FleetCor is a leading global provider of fuel cards and specialized payment products to businesses. FleetCor’s payment programs enable businesses to better control employee spending and provide card-accepting merchants with a high volume customer base that can increase their sales and customer loyalty. FleetCor serves commercial accounts in North America, Latin America, and Europe. For more information, please visit www.fleetcor.com.

Contact:

Investor Relations

investor@fleetcor.com

770-729-2017

 

4


FleetCor Technologies, Inc. and subsidiaries

Consolidated Balance Sheets

(In thousands, except share and par value amounts)

 

     December 31, 2011     December 31, 2010  
     (Unaudited)        

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 285,159      $ 114,804   

Restricted cash

     55,762        62,341   

Accounts receivable (less allowance for doubtful accounts of $15,315 and $14,256, respectively)

     481,791        260,163   

Securitized accounts receivable - restricted for securitization investors

     280,000        144,000   

Prepaid expenses and other current assets

     15,416        33,191   

Deferred income taxes

     4,797        4,484   
  

 

 

   

 

 

 

Total current assets

     1,122,925        618,983   
  

 

 

   

 

 

 

Property and equipment

     93,380        83,013   

Less accumulated depreciation and amortization

     (60,656     (56,195
  

 

 

   

 

 

 

Net property and equipment

     32,724        26,818   

Goodwill

     823,549        601,666   

Other intangibles, net

     299,460        193,861   

Other assets

     45,834        42,790   
  

 

 

   

 

 

 

Total assets

   $ 2,324,492      $ 1,484,118   
  

 

 

   

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 478,882      $ 177,644   

Accrued expenses

     42,242        49,176   

Customer deposits

     180,269        78,685   

Securitization facility

     280,000        144,000   

Current portion of notes payable and other obligations

     140,354        11,617   
  

 

 

   

 

 

 

Total current liabilities

     1,121,747        461,122   
  

 

 

   

 

 

 

Notes payable and other obligations, less current portion

     278,429        313,796   

Deferred income taxes

     112,880        83,255   
  

 

 

   

 

 

 

Total noncurrent liabilities

     391,309        397,051   
  

 

 

   

 

 

 

Commitments and contingencies

    

Stockholders’ equity:

    

Common stock, $0.001 par value; 475,000,000 shares authorized, 113,741,883 shares issued and 81,860,213 shares outstanding at December 31, 2011; and 475,000,000 shares authorized, 111,522,354 shares issued and 79,655,213 shares outstanding at December 31, 2010

     114        112   

Additional paid-in capital

     466,203        421,991   

Retained earnings

     534,498        387,163   

Accumulated other comprehensive loss

     (13,716     (8,101

Less treasury stock, 31,881,670 shares at December 31, 2011 and 31,867,141 shares at December 31, 2010

     (175,663     (175,220
  

 

 

   

 

 

 

Total stockholders’ equity

     811,436        625,945   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 2,324,492      $ 1,484,118   
  

 

 

   

 

 

 


FleetCor Technologies, Inc. and subsidiaries

Consolidated Statements of Income

(In thousands, except per share amounts)

 

     Three Months Ended December 31,     Year Ended December 31,  
     2011      2010     2011     2010  
     (Unaudited)      (Unaudited)     (Unaudited)        

Revenues, net

   $ 140,160       $ 106,547      $ 519,591      $ 433,841   

Expenses:

         

Merchant commissions

     14,694         9,501        51,199        49,050   

Processing

     25,931         17,079        84,516        69,687   

Selling

     10,332         9,576        36,606        32,731   

General and administrative

     25,047         38,110        84,765        78,135   
  

 

 

    

 

 

   

 

 

   

 

 

 
     64,156         32,281        262,505        204,238   

Depreciation and amortization

     9,924         8,507        36,171        33,745   
  

 

 

    

 

 

   

 

 

   

 

 

 

Operating income

     54,232         23,774        226,334        170,493   
  

 

 

    

 

 

   

 

 

   

 

 

 

Other expense (income), net

     19         (552     (589     (1,319

Interest expense, net

     3,433         4,181        13,377        20,532   

Loss on extinguishment of debt

     —           —          2,669        —     
  

 

 

    

 

 

   

 

 

   

 

 

 

Total other expense

     3,452         3,629        15,457        19,213   
  

 

 

    

 

 

   

 

 

   

 

 

 

Income before income taxes

     50,780         20,145        210,877        151,280   

Provision for income taxes

     13,008         2,632        63,542        43,384   
  

 

 

    

 

 

   

 

 

   

 

 

 

Net income

     37,772         17,513        147,335        107,896   

Calculation of income attributable to common shareholders:

         

Convertible preferred stock accrued dividends

     —           (322     —          (1,488
  

 

 

    

 

 

   

 

 

   

 

 

 

Income attributable to common shareholders for basic earnings per share

   $ 37,772       $ 17,191      $ 147,335      $ 106,408   
  

 

 

    

 

 

   

 

 

   

 

 

 

Basic earnings per share

   $ 0.46       $ 0.43      $ 1.83      $ 3.00   

Diluted earnings per share

   $ 0.45       $ 0.22      $ 1.76      $ 1.34   

Weighted average shares outstanding:

         

Basic shares

     81,512         39,612        80,610        35,434   

Diluted shares

     84,035         80,931        83,654        80,752   


FleetCor Technologies, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(In Thousands)

 

     Year Ended December 31,  
     2011     2010  
     (Unaudited)        

Operating activities

    

Net income

   $ 147,335      $ 107,896   

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

    

Depreciation

     11,451        11,261   

Stock-based compensation

     21,743        26,755   

Provision for losses on accounts receivable

     19,226        18,883   

Amortization of deferred financing costs

     1,865        2,016   

Amortization of intangible assets

     19,590        17,205   

Amortization of premium on receivables

     3,266        3,263   

Deferred income taxes

     (2,920     (3,952

Loss on extinguishment of debt

     2,669        —     

Changes in operating assets and liabilities (net of acquisitions):

    

Restricted cash

     6,579        5,639   

Accounts receivable

     (80,024     (38,960

Prepaid expenses and other current assets

     17,581        (3,506

Other assets

     (1,936     63   

Excess tax benefits related to stock-based compensation

     (13,284     (10,710

Accounts payable, accrued expenses and customer deposits

     119,088        3,902   
  

 

 

   

 

 

 

Net cash provided by operating activities

     272,229        139,755   
  

 

 

   

 

 

 

Investing activities

    

Acquisitions, net of cash acquired

     (326,035     (10,022

Purchases of property and equipment

     (13,454     (11,194
  

 

 

   

 

 

 

Net cash used in investing activities

     (339,489     (21,216
  

 

 

   

 

 

 

Financing activities

    

Net proceeds from initial public offering

     —          9,560   

Excess tax benefits related to stock-based compensation

     13,284        10,710   

Borrowings (payments) on securitization facility, net

     136,000        (74,000

Deferred financing costs paid

     (7,839     (1,067

Payment of dividends on convertible preferred stock

     —          (7,634

Proceeds from issuance of common stock

     8,477        538   

Principal payments on notes payable

     (338,965     (24,634

Proceeds from notes payable

     425,000        —     

Principal payments on other obligations

     111        (17

Other

     (179     —     
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     235,889        (86,544
  

 

 

   

 

 

 
    
  

 

 

   

 

 

 

Effect of foreign currency exchange rates on cash

     1,726        (1,892
  

 

 

   

 

 

 

Net increase in cash and cash equivalents

     170,355        30,103   

Cash and cash equivalents, beginning of year

     114,804        84,701   
  

 

 

   

 

 

 

Cash and cash equivalents, end of year

   $ 285,159      $ 114,804   
  

 

 

   

 

 

 

Supplemental cash flow information

    

Cash paid for interest

   $ 14,961      $ 21,409   
  

 

 

   

 

 

 

Cash paid for income taxes

   $ 48,333      $ 45,998   
  

 

 

   

 

 

 

Adoption of new accounting guidance related to asset securitization facility

     —        $ 218,000   
  

 

 

   

 

 

 


Exhibit 1

RECONCILIATION OF NON-GAAP MEASURES AND PRO FORMA INFORMATION

(In thousands, except shares and per share amounts)

(Unaudited)

The following table reconciles revenues, net to adjusted revenues:

 

     Three Months Ended December 31,      Year Ended December 31,  
     2011      2010      2011      2010  

Revenues, net

   $ 140,160       $ 106,547       $ 519,591       $ 433,841   

Merchant commissions

     14,694         9,501         51,199         49,050   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total adjusted revenues

   $ 125,466       $ 97,046       $ 468,392       $ 384,791   
  

 

 

    

 

 

    

 

 

    

 

 

 

The following table reconciles net income to adjusted net income and adjusted net income per diluted share:

 

     Three Months Ended December 31,     Year Ended December 31,  
     2011     2010     2011     2010  

Net income

   $ 37,772      $ 17,513      $ 147,335      $ 107,896   

Stock based compensation

     5,912        24,302        21,743        26,755   

Amortization of intangible assets

     5,621        4,456        19,590        17,205   

Amortization of premium on receivables

     816        816        3,266        3,263   

Amortization of deferred financing costs

     514        536        1,865        2,016   

Loss on extinguishment of debt

     —          —          2,669        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Total pre-tax adjustments

     12,863        30,110        49,133        49,239   

Income tax impact of pre-tax adjustments at the effective tax rate

     (3,295     (3,934     (14,805     (14,121
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

   $ 47,340      $ 43,689      $ 181,663      $ 143,014   
  

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income per diluted share

   $ 0.56      $ 0.54      $ 2.17      $ 1.77   

Diluted shares

     84,035        80,931        83,654        80,751   

For the periods presented below, the following table reconciles 2010 actual results to 2010 pro forma results, which reflects the impact of stock-based compensation expense related to share-based compensation awards, public company expenses, a decrease in the effective tax rate and an increase in diluted shares outstanding, effective during 2011, as if these changes had occurred in 2010:

 

     Three Months  Ended
December 31, 2010
    QTD Q4 2011
Changes1
    Pro forma QTD
December  31, 2010
    Year Ended
2010
    2011
Changes2
    Pro forma
2010
 

Income before income taxes

   $ 20,145      $ 18,042      $ 38,187      $ 151,280      $ 732      $ 152,012   

Provision for income taxes

     2,632        7,150        9,782        43,384        2,421        45,805   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     17,513        10,892        28,405        107,896        (1,689     106,207   

Stock based compensation

     24,302        (18,390     5,912        26,755        (5,012     21,743   

Amortization of intangible assets

     4,456        —          4,456        17,205        —          17,205   

Amortization of premium on receivables

     816        —          816        3,263        —          3,263   

Amortization of deferred financing costs

     536        —          536        2,016        —          2,016   

Loss on extinguishment of debt

     —          —          —          —          2,669        2,669   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total pre-tax adjustments

     30,110        (18,390     11,720        49,239        (2,343     46,896   

Income tax impact of pre-tax adjustments at the effective tax rate

     (3,934     932        (3,002     (14,121     (10     (14,131
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

   $ 43,689      $ (6,567   $ 37,122      $ 143,014      $ (4,042   $ 138,972   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income per diluted share

   $ 0.54        $ 0.44      $ 1.77        $ 1.66   

Diluted shares

     80,931          84,035        80,751          83,654   

 

1 

Q4 QTD December 31, 2011 changes include approximately $0.7 million in incremental cash operating costs for public company expenses, $3.8 million of non-cash compensation expenses associated with our stock plan, $23.0 million of non-cash compensation expense associated with our IPO, and a 12.5% increase in our effective tax rate from 13.1% for the QTD ended December 31, 2010 to 25.6% for the QTD ended December 31, 2011. Additionally, QTD December 31, 2011 reflects an increase of 3.1 million diluted shares outstanding, from 80.9 million for the QTD December 31, 2010 to 84.0 million for the QTD December 31, 2011.

2 

2011 changes include approximately $2.0 million in incremental cash operating costs for public company expenses, $2.7 million in losses on the extinguishment of debt, $18.0 million of non-cash compensation expenses associated with our stock plan, $23.0 million of non-cash compensation expense associated with our IPO, and a 1.4% increase in our effective tax rate from 28.7% in 2010 to 30.1% in 2011. Additionally, 2011 reflects an increase of 2.9 million diluted shares outstanding, from 80.8 million at in 2010 to 83.7 million in 2011.


Exhibit 2

Transaction Volume, Revenues and Adjusted Revenue, Per Transaction and by Segment

(In thousands except revenues, net per transaction and adjusted revenues per transaction)

(Unaudited)

 

     Three Months Ended December 31,     Year Ended December 31,  
     2011      2010      Change     % Change     2011      2010      Change     % Change  

NORTH AMERICA

                    

- Transactions

     37,636         36,640         996        2.7     152,700         148,570         4,130        2.8

- Revenues, net per transaction

   $ 2.43       $ 1.87       $ 0.56        30.1   $ 2.28       $ 1.94       $ 0.35        17.9

- Revenues, net

   $ 91,340       $ 68,347       $ 22,993        33.6   $ 348,784       $ 287,794       $ 60,990        21.2

INTERNATIONAL1

                    

- Transactions3

     25,906         11,012         14,894        135.3     62,121         41,841         20,280        48.5

- Revenues, net per transaction3

   $ 1.88       $ 3.47       $ (1.58     -45.7   $ 2.75       $ 3.47       $ (0.72     -20.8

- Revenues, net

   $ 48,820       $ 38,188       $ 10,632        27.8   $ 170,807       $ 145,188       $ 25,619        17.6

FLEETCOR CONSOLIDATED REVENUES1

  

              

- Transactions3

     63,542         47,652         15,890        33.3     214,821         190,411         24,410        12.8

- Revenues, net per transaction3

   $ 2.21       $ 2.24       $ (0.03     -1.3   $ 2.42       $ 2.27       $ 0.14        6.4

- Revenues, net

   $ 140,160       $ 106,535       $ 33,625        31.6   $ 519,591       $ 432,982       $ 86,609        20.0

FLEETCOR CONSOLIDATED ADJUSTED REVENUES1,2

  

           

- Transactions3

     63,542         47,652         15,890        33.3     214,821         190,411         24,410        12.8

- Adjusted Revenues per transaction3

   $ 1.97       $ 2.04       $ (0.06     -3.0   $ 2.18       $ 2.02       $ 0.16        8.1

- Adjusted Revenues

   $ 125,466       $ 97,034       $ 28,432        29.3   $ 468,392       $ 383,932       $ 84,460        22.0

 

1 

Calculation of revenue per transaction for our International segment and on a consolidated basis for the three months and year ended December 31, 2010 excludes the impact of a non-renewed partner contract in Europe, inherited from an acquisition, which we chose not to renew. This non-renewed contract contributed approximately 0.01 million transactions and $0.01 million in revenues, net to our International segment in the three months ended December 31, 2010; and approximately 3.6 million transactions and $0.9 million in revenues, net to our International segment in the year ended December 31, 2010. This contract had a high number of transactions and very little revenue and had a $0.03 and $0.25 negative impact on our International segment revenue per transaction in the three months and year ended December 31, 2010, respectively. We believe that excluding the impact of this contract is a more effective measure for evaluating the Company’s revenue performance of its continuing business. Revenues, net, excluding the impact of a non-renewed partner contract in Europe for our International segment and on a consolidated basis are supplemental non-GAAP financial measures of performance. The results from our Mexican prepaid fuel card and food voucher business acquired during the third quarter of 2011 are reported in our International segment.

2 

Adjusted revenues is a non-gaap financial measure defined as revenues, net less merchant commissions. The Company believes this measure is a more effective way to evaluate the Company’s revenue performance. Refer to Exhibit 1 for a reconciliation of revenues, net to adjusted revenues.

3 

The presentation of prior quarters presented herein has been conformed to the current period presentation that eliminates certain intercompany transactions.


Exhibit 3

Segment Results

(In thousands)

(Unaudited)

 

     Three Months Ended December 31,      Year Ended December 31,  
     2011      2010      2011      2010  

Revenues, net:

           

North America

   $ 91,340       $ 68,347       $ 348,784       $ 287,794   

International1

     48,820         38,200         170,807         146,047   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 140,160       $ 106,547       $ 519,591       $ 433,841   
  

 

 

    

 

 

    

 

 

    

 

 

 

Operating income:

           

North America

   $ 38,362       $ 11,102       $ 153,687       $ 106,745   

International1

     15,870         12,672         72,647         63,748   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 54,232       $ 23,774       $ 226,334       $ 170,493   
  

 

 

    

 

 

    

 

 

    

 

 

 

Depreciation and amortization:

           

North America

   $ 5,024       $ 4,969       $ 19,845       $ 20,220   

International1

     4,900         3,538         16,326         13,525   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 9,924       $ 8,507       $ 36,171       $ 33,745   
  

 

 

    

 

 

    

 

 

    

 

 

 

Capital expenditures:

           

North America

   $ 2,865       $ 2,031       $ 6,840       $ 6,891   

International1

     2,181         2,089         6,614         4,303   
  

 

 

    

 

 

    

 

 

    

 

 

 
   $ 5,046       $ 4,120       $ 13,454       $ 11,194   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

1 

The results from our Mexican prepaid fuel card and food voucher business acquired during 2011 are reported in our International segment.